Stock investment strategies have never been simple affairs to be objectively explained or applied! Stocks emerged as the preferred instrument for mobilizing private finances by leveraging and projecting the enterprising potential of companies. It is all a game of expectations! It starts from showcasing the prospective strengths that a company assumes in the near future and then buying people’s support for the company’s expansion. Speculation has much to deliver in developing public sentiment and diverting their finances in favor or disfavor of the company concerned.

Swing Trading Strategies – An Intermediate-Term Game of Profit

Swing trading strategies assumed prominence among investors when stock markets began showing enhanced and sustained movements with increased liquidity. Trying to maximize capital gains was a potent reason for this phenomenon. Some stocks have a tendency to move rapidly once they move past a pivot point and can generate decent short to intermediate term profits. To leverage the profit potential of such short to intermediate term movements constitutes the objective of swing trading strategies.

‘Swing’ as the word suggests refers to the deflections in the price of the particular stock. Investors who aim to ride on the swing develop their positions when the stock is ready to make a move higher and exit their position when the stock has reached its target. The period here is about a few days to a few weeks. Thus swing trading lies somewhere between day trading and long term holding. The stock investment strategies for swing oriented profits are not based on intricate details of the stock’s fundamental value, but are simply concerned with the price and volume signature for the targeted stocks. The aim is to cash in on these movements, and maximize returns by compounded this strategy over and over again.

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